Digital Real Estate in the Metaverse: An Empirical Analysis of Retail Investor Motivations

TL;DR

This study explores retail investors' motivations for digital real estate in the crypto-metaverse, identifying four key motivational groups and factors influencing investor behavior, with implications for platform development and investor engagement.

Contribution

It introduces a detailed motivational segmentation of crypto-metaverse landowners based on a comprehensive survey and principal components analysis, highlighting factors influencing investor types.

Findings

Four distinct motivational groups identified

Age, education, and risk preferences influence investor segmentation

Insights inform platform design and investor engagement strategies

Abstract

This paper investigates retail investor motivations for digital real estate ownership in the crypto-metaverse. Utilizing a detailed financial behavior survey of metaverse landowners' intrinsic and extrinsic motivations, we apply principal components analysis to uncover four distinct motivational groups: (1) Aesthetics and Identity, (2) Social and Community, (3) Speculation and Investment, and (4) Innovation and Technology. Our findings reveal that age, education, investment knowledge, risk-taking, and impulsivity significantly influence investor group membership. This research provides valuable insights to investors and developers, underscoring the potential of a platform to attract retail investors with speculative intentions, engagement longevity, and passive or active trading characteristics, contingent on unique crypto-metaverse attributes.